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European Family Businesses (EFB) and KPMG joined forces once again to create the fifth edition of the European Family Business Barometer. The latest report showed that family businesses in Europe continue to demonstrate a high level of confidence in their future prospects and business performance and are optimistic, determined and skillful at navigating through challenges and adapting to market changes.

The European Family Business Barometer is based on the responses to an online survey from 959 questionnaires received by family businesses across 23 European countries from 1 May to 30 June 2016. As family businesses in Europe continue to be an important market, with approximately 14 million family owned companies providing over 60 million jobs in the private sector, this report provides a better understand of the trends and future plans of these businesses.

Several themes emerged throughout the reports analysis, including:

Some of the major issues faced by family businesses consist of the war of talent, political uncertainties and a decline in profitability.

The primary goals that were identified include improving profitability, increasing turnover and becoming more innovative.

Investments are a hot topic among family businesses and 73 percent are planning strategic investments in the near future.

One in five family businesses plan to hand management over to the next generation within the next year.

The top driver for success noted was, having a good governance structure and processes in place and 88 percent of the family businesses surveyed indicated that they currently have some formal governance mechanism in place.

And, overall family businesses show a strong confidence in the future.

Attached you will find the final report with a full analysis of the results and trends identified from the companies surveyed, including the respondents profiles.